Term
| What is the external environment? |
|
Definition
|
Dimensions in the broader society that
influence an industry and the firms within it
|
|
|
Term
| General Environment Opportunities |
|
Definition
|
A condition in the genral environment that if exploited helps a company achieve strategic competitiveness.
|
|
|
Term
| General Environment Threats |
|
Definition
|
A condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness.
|
|
|
Term
| General Environment characteristics/ Demographic |
|
Definition
|
population size/age structure/ geographic distribution/ ethnic mix
|
|
|
Term
| General Environment characteristics/ Economic segment |
|
Definition
|
inflation rates/ interest rates/ trade deficits or surpluses/ budget deficits/ personal savings rate/ business savings rate/ GDP
|
|
|
Term
| General Environment characteristics/ Sociocultural |
|
Definition
|
women in the workplace/ workforce diversity/ attitudes about quality of worklife
|
|
|
Term
| General Environment characteristics/ global segment |
|
Definition
|
international events/ emerging markets/ globalization
|
|
|
Term
| General Environment characteristics/ technological segment |
|
Definition
|
product innovations/ applications of knowledge/ new communication technologies.
|
|
|
Term
| General Environment characteristics/ political/legal segment |
|
Definition
|
antitrust laws/economic policies/taxation laws/deregulation philosophies/labor training laws
|
|
|
Term
| What is the Industry Environment? |
|
Definition
|
set of factors directly influencing a firm and its competitive actions and competitive responses.
|
|
|
Term
| Porters 5 forces model of Industry Competition. What are the five forces? |
|
Definition
|
threat of new entrants/ Rivalry among competing firms/ threat of substitute products/ bargaining power of buyers/ bargaining power of suppliers
|
|
|
Term
|
Definition
|
increases competitivness of an industry and decreases profitability. A function of barriers to entry and the retaliation expected from existing industry participants.
|
|
|
Term
| Bargaining power of suppliers |
|
Definition
|
suppliers are large and few in number. suitable substitute products are no available, suppliers products create high switching costs.
|
|
|
Term
| Bargaining Power of buyers |
|
Definition
|
buyers are large and few in number. buyers purchase a large portion of industrys total output. Buyers can switch to other products without incurring high switching costs.
|
|
|
Term
| Threat of substitute products |
|
Definition
|
buyers face few switching costs. substitute product's price is lower. Substitute products quality and peformance are equal to or greater than the existing product.
|
|
|
Term
| Intensity of Rivalry among competitors |
|
Definition
|
there are numerous or equally balanced competitors. industry growth slows or declines. High exit barriers.
|
|
|
Term
| What does an unattractive industry look like? |
|
Definition
|
low entry barriers/suppliers and buyers ahve strong positions/ strong threats from substitute products/ intense rivaly among competitors.
|
|
|
Term
| What does an attractive industry look like? |
|
Definition
|
high entry barriers/ suppliers and buyers have weak posistions/ few threats from substitute products/ moderate rivalry among competitors.
|
|
|
